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What is bitcoin and how does it work

A simple explanation of bitcoin abitcoinjoshuagamennd why it is gaining so much popularity.

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the REAL 1% – the International Monetary Fund

Small business owners who employ local workers and provide value to the community are NOT the 1%! The IMF is the 1%.

‎1. The IRS is not a U.S. Government Agency. It is an Agency of the IMF.
2. The IMF is an Agency of the UN.
3. The U.S. Has not had a Treasury since 1921.
4. The U.S. Treasury is now the IMF.
5. The Attorney General of the U.S. is not employed by the U.S. But is an Agent of INTERPOL which is head quartered in Lyons, France.
6. The United States does not have any employees.
7. Social Security Numbers are issued by the UN through the IMF.
8. There are no Judicial courts in America and there has not been since 1789. Judges do not enforce Statutes and Codes. Executive Administrators enforce Statutes and Codes.
9. There have not been any Judges in America since 1789. There have just been Administrators.
10. According to the GATT you must have a Social Security number.
11. You are an “Institutional Unit” in which your body and labor are pledged to the UN through the IMF.
12. We have One World Government, One World Law and a One World Monetary System.
13. Your Social Security number is your slave number. Just about everyone in the World has a Social Security number from the UN through the IMF.
14. The UN is a One World Super Government.
15. No one on this planet has ever been free. This planet is a Slave Colony. There has always been a One World Government. It is just that now it is much better organized and has changed its name as of 1945 to the United Nations.
16. New York City is defined in the Federal Regulations as the United Nations. Rudolph Gulliani stated on C-Span that “New York City was the capital of the World” and he was correct.
17. Social Security is not insurance or a contract, nor is there a Trust Fund.
18. Your Social Security check comes directly from the IMF which is an Agency of the UN.
19. You own no property, slaves can’t own property. Read the Deed to the property that you think is yours. You are listed as a Tenant.
20. The most powerful court in America is not the United States Supreme Court but, the Supreme Court of Pennsylvania.
GUESS WHO AND WHAT OWNS YOU AND THE UNITED NATIONS ?
As a matter of fact the imagined President, imagined Representatives, imagined Senators, imagined Supreme Court Justices and imagined Federal Judges are not paid by the United States Government. Actually the United States Government does not have any employees They are paid by the International Monetary Fund in electrons. You see there is no such thing as the United States Government. In reality there are no Governments. There are Corporations (Fictions) such as the Federal Reserve Inc., and the United States Inc., which in fact are private corporations. The United States Inc., is just a slave management company. Guess what that makes you? If you said property, you are correct! You are Human Capital. The shares that were issued for the Federal Reserve when it was created back in 1913 only cost $100.00. That was quite the bargain.

*To verify the facts in the preceding paragraphs see (5 U.S.C. 903, 12 U.S.C. 95, 18 U.S.C.A. 914, 22 U.S.C. 263, 285, 286, 287, 288. Public Law 89-719, Public Law 94-564, Public Law 101-167, Public Law 91-151 Public Law 103-465, House Report 103-826 T.D.O 150-10, T.D.O. 92, 41 Stat. Chap 214 pg. 654, Emergency Banking Act 48 Stat. 1, Articles of Agreement 60 Stat. 1440, 20 CFR chapter 111, subpart B 422.103 (b) (2) (2), United Nations Secretariat Revised System of National Accounting, Diversified Metal Products v. IRS et al. CV-93-405E-EJE U.S.D.C.D.I., Cromelin v. United States, 177 F.2d 275, 277 Tomalewski v. United States, 493 F.Supp 673, 675 Foster v. Bork, 425 F.Supp 1318, 1319-20 FRC v. GE 281 U.S. 464, Keller v. PE 261 U.S. 428, United States v. LePatourel, 571 F2d 405, 410, Respublica v. Sweers 1 Dallas 43, INTERPOL Constitution Art. 30, Executive Order 10422, Papal Bulls of 1455 and 1493. 42 Pa.C.S.A. 502. General Agreement on Trade and Tariffs.

 

Greek Bailouts – Conspiracy Exposed

by: Joshua Gamen

Former Prime Minister of Greece said in an interview that he thinks the media and journalists are being too hard on Greece, and that Greek bonds are actually healthier than they seem. He also said that investors should buy Greek bonds. All of this amidst a $170 billion bailout package to Greek, where investors are taking a 70% real loss on Greek bonds! Conspiracy of the rich at it’s finest… For more on the conspiracy of the rich from Joshua Gamen, click here!

What GDP really tells us

(What is really scary is that the chart above stops in 2005..)

Written by: Joshua Gayman

Gross Domestic Product(GDP) is the sum of all final goods and services produced within a nation’s borders for a given period(year). GDP is made up of only 4 different factors:

1. Personal Consumption Expenditure: The amount spent by individuals on goods and services.

2. Private Investment: Private investing into things such as factories, equipment, and residential/non-residential buildings.

3. Net Trade: The amount the US exports minus the amount it imports.(This is currently a negative number, hence the term: “Trade Deficit.”)

4. Government Spending: Doesn’t matter if it is buying Barbies, war tanks or investing in medical research. It has the same effect on GDP.

In 2011, the United States’ GDP was $15,000 billion.(NOTE: 1,000 Billion = 1 Trillion. This really puts the $16 Trillion national debt into perspective doesn’t it..) Of that $15,000 Billion, Personal Consumption accounted for 71% of GDP. Private Investment accounted for 13% of GDP. Net Exports is a negative number because we import more than we export. You could say it accounted for -4% of GDP. Finally, Government Spending(federal and state levels) accounted for 20% of GDP.

Let’s take a closer look at these four factors of GDP:

1. Personal Consumption: At 71% of GDP, this factor is by far the most important. The amount that individuals spend is determined by two factors: how much money they earn and how much money they can borrow. These two factors are also the most important factors for 2.Private Investment, because business investment and residential construction both are driven by consumer demand, which is driven by the ability for the consumer to take on more debt.

The expansion of debt owed by the individuals in the United States was the strongest factor driving the economy from the early 1990s up until the economic crisis of 2008. In 1993, the total debt of the household sector first topped $4 Trillion. This number peaked near $14 Trillion in the 3rd quarter of 2008. At that point, the donkey collapsed from too much debt on it’s back when individuals could no longer afford the interest payments on their loans and began to default. (From 2002-2007, the household sector increased its borrowing by an average of $1 Trillion per year.) It was all of this debt that funded personal consumption and therefore GDP.

When loans began to default in 2008, the banks refused to lend the household sector any more money. With credit cards and Home Equity Lines of Credit(HELOCS) getting cut, people were forced to spend less money. With personal consumption contracting, private investment began to contract even more. The result of this was a STEEP decline in US GDP in the 4th quarter of 2008. During the same quarter, unemployment shot up to 10%. At this point, the US Government began to spend much, much more. Had it not done so, the economy would have collapsed into a Greater Depression. It’s just math:

Personal Consumption + Private Investment – Net Trade + Government Spending = GDP

3. Net Exports: This number really comes down to the competitiveness of the country’s goods and services in the global economy. Since this number is negative in the US, it is obvious that we consume more than we produce. We offset this number by holding Reserve Currency status and printing money. Luckily for us, the system will collapse when the world no longer buys American debt, therefore the financial system is doing whatever they have to do to keep the dollar alive. This of course is not a good thing if you are a saver.

4. Government Spending: In the United States, government spending is supposed to be determined by elected officials in response to the demands of the voting public, but the voting public is gaining an increased awareness that government spending is actually determined by the demands of corporate donors.

All of these numbers and stats for me to point out one simple thing: Debt is more important to the United States than production. If it weren’t, we would stop taking on debt, stop paying for unfunded liabilities, and start competing to produce and sell in the global economy(export). it is much easier for us to simply take on more debt, as long as the world will buy our bonds and allow us to print dollars.

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What Drives the Global Economy?

Written By: Joshua Gayman

The Financial Times has been running a series this month entitled Capitalism In Crisis. When reading this story, it is apparent just how far we are from fixing this global economic crisis. As Richard Duncan points out in his latest post titled This is not a Crisis of Capitalism, “(it’s) not because of the insights contained in the articles, but because the entire premise of the series is completely wrong. This is not a crisis of Capitalism.”

Capitalism is an economic and political system in which a country’s trade and industry are controlled by private owners for profit. More specifically, Capitalism is where the private sector drives production by accumulating capital and investing back into the system. With true Capitalism, the government’s role is very small.

The truth is that the United States has not been Capitalistic for decades. Our federal government spends 25% of the money in our economy and the central bank AKA “The Fed” creates the money out of thin air and manipulates it’s value. Thus, our economy is no longer driven by capital accumulation and investment like before. So if it’s not capital accumulation and investment that are driving the economy, what is it you ask? The answer is DEBT.

Credit creation and consumption(using stuff) have now become the dominant forces driving economic growth. Thus, we no longer live in a Capitalistic economy. 

Capitalism was a phenomenon of the 19th century, one that did not survive past the 1st World War. WWI destroyed the standard upon which Capitalism was built. This standard was the gold standard, and once it was gone, central banks and governments gained near-total control over economic production.

The ENORMOUS expansion of government debt that was used to fund WWI created a credit bubble that we know refer to as “the Roaring Twenties.” This bubble of the Roaring Twenties soon popped and became the Great Depression of the 1930s once the debt was too big to repay.

WW2 was no different, with again complete government control over the economy. In the coming decades after, government spending surged on social programs and military expansion. By the 1960s, the government was using Keynesian tools to control monetary policy and the rate of economic growth. In 1971, President Nixon removed the dollar from the gold standard, which meant that dollars were no longer backed by gold. This gave way to a HUGE explosion of a fiat currency supply(money backed by nothing but the faith the people have in their government’s currency). This expansion in the money supply transformed our world and gave way to the biggest economic boom in human history.

In 1964, the total of all credit in the United States hit $1 Trillion. By 2010, the credit supply had expanded 50 times to $50 Trillion(Source: Richard Duncan). This new found money, or credit, created enormous wealth, profits, jobs, and tax revenues, and ultimately brought on a new age of a global economy. As long as credit keeps expanding, prosperity increases. Credit has replaced Capital as the key driver of the economy.

The economic crisis of 2008 had nothing to do with Capitalism. The crisis of 2008 and that we are still facing today stems from issues with credit creation. Because for what caused the biggest boom(or bubble) in human history, is a debt that must be repaid(unlike Capital). The debt that was taken on which drove the expansion of the last 40 years cannot be repaid, hence the crisis. Even more disturbing, is that now a large percentage of the population is now not credit worthy. This makes further credit expansion nearly impossible. And under this credit-ran economy we now live under, when the credit doesn’t expand, the growth slows, until eventually, the music stops altogether.

This 40 year period of credit expansion birthed a new era in the global economy. The United States has been de-industrialized as a result of being able to buy products from low wage countries on credit. As Industry got smaller in the US, the Finance sector became the dominant sector of the US economy. But the music has slowed down dramatically in the Finance sector as well, now that Americans can’t bear any additional debt. Now that we are weak in industry and in way too much debt, it is a growing problem for the United States to be able to act as the driver of the global economy.

But it’s not just the US who’s economy is no longer capable of working successfully. It’s also the economies of all the countries, such as China, that have seen growth as a result of strong manufacturing and export. This is another global imbalance yet to correct.

Truth is, at least to a large extent, the government now manages our nation’s economy. The US’ demand is still the most important factor to economic growth to the global economy. The world NEEDS us to buy their stuff! But without credit, we can’t!

Now, the actions of other governments and government-related institutions(IE: the European Union) must be carefully monitored. Point in case, the news 2 months ago by the European Central Bank(Europe’s Fed) that they would lend Euros($630 billion worth) to European banks for up to 3 years at low interest rates, is the reason that global stock markets have been gaining over the past 6 weeks. The stock market is also at a high since the 2008 crisis, following news from the Federal Reserve that they would keep interest rates at near zero level through 2014.

Global markets have came back sharply not because of the success of the intervention from the Central Banks itself, but because investors are realizing that more government-directed interventions will come when necessary to prevent future crises.

It is flat out sad that the global economy depends on government intervention. This topic leads to a very controversial political subject regarding smaller or bigger government. Once side argues for bigger government to avert the crisis and the other wants small government with less regulation to get us out of the mess. The reality is, unless we can come together to find a true solution to our monetary problem, both sides will get slaughtered as the biggest bubble in human history pops and credit stops, wiping out the America middle class and taking the benefits with it that we have seen as a by-product of our global economic status.

Don’t get me wrong, market forces still have an important impact in the economy. My point is that now, more often than not, it is government or central bank’s action that has so much influence on market forces that it becomes a very grey area as to where the government influence stops and the market influence itself begins. Supply and Demand still play the key role in setting value. It’s just that today, governments have an enormous role in influencing both. It is imperative that we recognize this, and understand that this is not Capitalism. We must no longer worry about fixing the crisis with Capitalism but instead shift our attention to the crisis in the current economic system that exists in this global economy, a system of debt. The only question we should be asking is this, “Do we try to fix the current debt system, or do we need a better system? Do we need to abolish the current system and go back to the former phenomenon that was a true Capitalistic economy?” I woud say this, either way, one must understand what is going on in the global economy if he(or she) wants to join the rich, as opposed to be forced into the poor, as the middle class is wiped out.

 

Federal Reserve Says Economy Will Suck Through 2014

Written by: Joshua Gayman

Last week the World seemed to take a break from worrying about Europe and focused their attention back to the United States and the meeting of the Federal Reserve AKA the Fed. The proof? The Euro rised big against the Dollar.

Ironically, the United States’ problems far surpass the debt problems of the European Union. The difference? We have a Central Bank that can print our currency out of nothing!

The Fed introduced an “Inflation Target,” which they set at 2%. This is something that has never been done before! Last year’s inflation numbers were closer to 3.5-4%, but given that the outlook for coming months is to drop significantly, expectations point to a drop under 2%, at which time would be a perfect scenario for the Fed to come out and unveil a 3rd round of quantitative easing AKA QE3.

The Fed also said they will keep short term rates(“over-night rates”) at all time lows through 2014. The Federal Reserve has never stated a policy that would last 3 years! What’s more crazy, is that debt is the only product the Central Bank sells. Can you imagine if a large company came out and said, “We are going to sell our one and only product at all time lows for the next 3 years.”? I am thinking we’d question whether they could survive another 3 years. The same should be true for the Fed, but I doubt it will. People are still so blinded by the illusion that they actually produce something..

The monetary policy by the Fed to keep rates low KILLS savers. This included anyone who has money in checking, savings, any type of deposit account, IRA, 401k, mutual funds, pensions, etc. If you have your money in one of these places, don’t expect a return for…YEARS.

So where do you see the economy going in the next few years? Well, if the statement by the Fed is any indication, I would say a strong recovery is not on the horizon.

I really don’t see these long term low rates benefiting the masses. I do see it benefiting small business owners who rely on short term loans. I also see it benefiting those who have Adjustable Rate Mortgages AKA “ARMS.” And the group I see being benefiting most by this are those savvy entrepreneurs who will use this cheap money to buy cash flow producing assets.

So what’s the bottom line?

The bottom line is that nothing is free. Money is no exception. There is a “cost for capital.” This means that there is a cost for borrowing money. DUH! The problem is that the cost of capital would be much higher if it weren’t for the Federal Reserve who can set the interest rate anywhere they want. By the Fed placing interest rates under the cost for capital, mal investment is brought into our economy by people who are getting loans for things they shouldn’t. It is because of this that I think the Fed needs to back off and let the market find it’s true equilibrium. This would allow for the smart money to come back into the marketplace. The smart money will stand on the sidelines as long as the Fed holds interest rates low. Investors can’t compete with the Fed when the Fed gets it’s capital by printing it out of thin air! Because the Fed simply “prints” their “capital,” they can hold interest rates at all time lows as long as they need to. Of course this is terrible for the economy as it means we are at their mercy.

If stimulating more debt would help us recover, I think it’s safe to say we’d have recovered by now. The reality is that pushing more debt into the system will not make our problems go away. It won’t slow the foreclosures, it won’t add jobs, and it won’t make life cost less money.

Like any private company, the Federal Reserve exists for one main purpose….PROFIT. The Federal Reserve can’t profit if it doesn’t exits. And it wouldn’t exist if people realized they don’t create anything of real value.

An indebted society is not a healthy one. Look at Greece.. If it weren’t for the US being able to print money, we’d be no better off than them.

Are You Living On Financial Edge?

             Are You Living on the Edge without a Financial Education?

Posted on: Tuesday, January 24, 2012|Written by: Robert Kiyosaki

When I was a young boy, the path to retirement was simpler. For the most part, if you saved your money regularly, paid your mortgage off, and lived modestly, you could retire well. This was partly because inflation was low since the dollar was pegged to gold and also because most employees could expect a company pension and health benefits until the day they died. It did not take much intelligence to have a secure, financial future.

Today, we live in a world that requires an extremely high, financial intelligence to retire well.

It is no longer enough to save money, as higher inflation and taxes wipe out your earnings. You can’t rely on a company pension because most companies don’t offer one. Instead, it is expected that you contribute to a 401(k) plan that may or may not provide you a secure retirement and that is simply a glorified, tax-deferred savings account that benefits the rich, not you.

These changes are because of two actions by the U.S. government that I’ve written extensively about, most notably in my book Conspiracy of the Rich. In 1971, Nixon took the dollar off the gold standard, making the dollar a currency instead of money. And in 1974, the Employee Retirement Income Security Act was passed, paving the way for 401(k) plans, forcing uneducated workers into the stock market, and creating the financial services industry.

It’s taken about three decades, but we’re seeing the devastating effects of those actions today as individuals and countries are living on the edge of financial disaster.

On an individual level, take for instance a young friend of mine’s father whose dad worked his whole life in an old-world industrial plant. Every time my friend talked with his dad, his dad would mention how long it was until his retirement, where he’d collect a pension and health benefits and enjoy golf a few times a week and sports on TV. There were no savings to speak of, some stock options decimated by the economic downturn, much debt, and no other plan. Unfortunately, only a few months before my friend’s dad hit the minimum retirement age, the plant went for sale, found no buyers, and closed. Now he, along with hundreds of others at that plant, cannot find a new job, have no savings, and are looking at a very insecure, financial future. For him, it may be too late.

On a national level, look at the Euro Zone. According to The Wall Street Journal, “The global economy faces a depression-era collapse in demand if Europe doesn’t quickly act to dramatically boost the size of its debt-crisis firewall, implement pro-growth policies and further integrate the euro zone, the head of the International Monetary Fund warned Monday.”

As IMF Managing Director Christine Lagarde remarked over the weekend, the Euro Zone’s efforts to stymie debt problems “is about avoiding a 1930s moment, in which inaction, insularity, and rigid ideology combine to cause a collapse in global demand… A moment, ultimately, leading to a downward spiral that could engulf the entire world.” If Europe collapses, the world goes down with it — and the jury is still out on what will happen. But the world’s financial experts are sending out the warning cry.

As you read these stories above, they probably sound vaguely familiar, have little emotional impact on you, and you may have even skipped over them.

Why?

These stories echo stories that have been shared for many years now. The news is filled with stories of people living in countries on the edge of financial collapse, and then buffered by good news here and there to keep us all from falling into complete despair.

The reality is that we have become used to living on the edge, and we’re forgetting what it means to live comfortably inland. This is not all bad, if you have the right mindset.

Living on the Edge Requires a Financial Education

Living on the edge requires alertness and intelligence, you cannot give up or be lulled or else you will fall. Each step must be calculated and taken carefully, but confidently, to get to safety. The only other option is to do nothing and hope someone will save you —which is akin to suicide.

It’s for times like these that the Rich Dad Company was formed. This website, our books and DVDs, our coaching, and financial education all exist to help equip you for the perils of our modern economy so that you can be sure to have the knowledge and practical application required to survive and thrive while others fail and fall.

For many, there is no choice about living on the edge. The die has been cast for us by people much more powerful and influential than us. But we can control our actions on the edge. It’s my hope you’ll step forward confidently and smartly, equipped with as much financial knowledge and courage as you can gain and muster. It sure beats the alternative.

To increase your financial education now, click here to find out about our free resources and online community.